Your PS3 has as people have already said, "Yellow lighted". Keep in mind that you can have it "refurbished" through sony for 150 bucks (they send you a factory repaired 40gb to replace the one you send them just make sure you removie the harddrive and replace it with the old one if you changed it) or go with the option of getting someone to reflow it for less in which case you get your old system back... hopefully and you can at least have the system back long enough to remove it from your PSN account and possibly back up some of your data before buying a new system (after doing a non sony repair like this Sony wont even look at it so it's useless to send it in after that.)

It's like what? 250 for a new slim 160gb? You dont have PS2 Backwards compatibility in a 40gb so it's not a big loss to upgrade. Sony will trade you a slim for the old machine though if youd rather not refurbish it for like 100 I think. if you'd rather refurbish there's nothing that says your system cant last quite sometime as long as you dont run it too hard. I've refurbed twice because I like having PS2 Backwards compatibility on my 60gb. My original system lasted 2.5 years, my second I think I killed it in about a year and a half with too many long, late night Mass Effect 2 sessions without paying attention to the high speed of the fan and possibly not having it in a decent ventilated space, my current PS3 is still working fine this year and frankly if it were to go again I'd probably still refurb it because I'd loose a lot of things I actually use in the 60gb model that are no longer in the slims.

The biggest downside is having to redownload all your content (if all you have is a 40gb drive and havent upgraded this would be not so bad a problem for most I have a 2/3rds full 320gb drive so it becomes a hassle until sony fixeds the download list to be more friendly to people redownloading old content) and the fact that the old yellow lit systems stay on your PSN account and can factor in to the system limit (currently 3 PS3s and 2 PSPs/Vitas) on content because you can't deactivate a Yellow light system from your account since it wont stay on long enough to perform the process. Eventually you will either have to ask sony to remove the dead systems (which would require you keeping records that show you had to refurbish systems) or use the online SEN account tool on sony's website to refresh your account, but this can only be used once every 6 months.

My launch day 120gb slim has so far been a champ, doesnt really have any hot spots even after 12hours of TV or 5hr Blu-Rays.
A great advantage of the slim is the fact it has two optical lasers, one for DVD / CD and the other for Blu-Ray obviously.

Even tho these new Slims are butt fugly, its clear alot of design and improvements are inside it so hopefully it'll last alot longer.

-[ Over half of the 100~ish UHD Blu-rays on the market ]-
-[ I wouldn't even watch if they came free with my breakfast cereal ]-

I have the phat Ps3 60GB model and it died 3 years ago, I have sent it to Sony and paid 170 Canadian dollars. It still working fine until now and it has been over 3 years now, but the fan is making noise again which I think it will die soon.

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